I've just noticed that investing in bank stocks is once again attracting investors' attention, especially as we enter 2025. Let's take a look at why bank stocks remain interesting and which ones should be closely monitored.

For the Thai market, there are six main stocks that most analysts focus on. Bangkok Bank (BBL) stands out for its stability and extensive international network. Price targets from various institutions range between 161-178 baht. Kasikornbank (KBANK) is strong in digital banking, with the K PLUS app having a large user base, but investors should watch out for a high proportion of SME loans.

SCB (Siam Commercial Bank) is undergoing a major restructuring, shifting from a traditional bank to a fintech group. It has the potential for leapfrog growth but also faces risks from investing in new businesses. Krungthai Bank (KTB) benefits from being a state-owned bank, with the "Pao Tang" app widely used nationwide.

TMBThanachart Bank (TTB) was formed from a merger and is currently creating synergies from the integration. Analysts expect it to be less affected by interest rate cuts than larger banks. Krungsri (Bank of Ayudhya, BAY) has an advantage as a subsidiary of Mitsubishi UFJ Financial Group, the largest financial group in Japan.

Turning to the global market, JPMorgan Chase (JPM) is the largest bank in the U.S., with diverse business operations and serving as a core holding for many investors. Bank of America (BAC) ranks second in the U.S., with a high deposit share, benefiting from higher interest rates.

HSBC is a global bank with significant operations in Asia, especially Hong Kong and China. It has growth opportunities as a gateway connecting the Western and Eastern worlds. DBS, the largest bank in Southeast Asia, headquartered in Singapore, is recognized as a leader in digital banking.

ICBC is the bank with the largest assets in the world, but investing in Chinese bank stocks carries specific risks, from regulatory issues to asset quality concerns. MUFG, Japan’s largest financial group, could benefit if the Bank of Japan begins to raise interest rates.

So, why are bank stocks still worth investing in? First, although the rising interest rate cycle may have peaked, current rates are still significantly higher than during the COVID-19 period, which helps increase banks’ net interest margins. Second, dividends are attractive; large bank stocks often have a history of consistent and satisfactory dividend payments.

Third, economic recovery—if the global and Thai economies continue to rebound—will boost loan demand. Fourth, some bank stocks may still be undervalued relative to earnings per share or book value. Fifth, new trends show banks evolving into platforms that connect various services, such as shopping, delivery, insurance, or investment, all through mobile apps.

For Thai investors interested in bank stocks, whether domestic or foreign, there are many options. Thai bank stocks can be bought and sold through local brokerage accounts, while foreign bank stocks can be traded via Thai securities firms offering international services or CFDs for short-term speculation.

Overall, bank stocks remain a worthwhile consideration for long-term investors seeking regular dividends. Both Thai and international bank stocks have growth potential driven by various factors. The key is to thoroughly research each one to make investment choices that effectively build wealth.